Pan Africa Solar, a utility scale solar energy company, on Monday said it is developing a 1,000 megawatt portfolio of solar projects in Nigeria and, with a plan to bring more than $1 billion of foreign direct investments into the country over the next five years.

Marcus Heal, the company’s CEO, stated this in Abuja when the federal government, through the Nigeria Bulk Energy Trader (NBET), and Pan Africa Solar signed Nigeria’s first ever solar power purchase agreement (PPA).

The PPA signed with NBET was to pave way for the commencement of the 75mw solar photovoltaic power project, located in Katsina State worth $146 million.When completed, energy produced from the plant is projected to be commissioned in 2017, will be sold for a tariff of 11.5 cents per kWh.

“We are delighted that the federal ministry of power is pushing ahead with its solar energy policy. This tariff has been achieved through harnessing lower construction and lower solar panel prices and the commitment of the project’s lender,” said Marcus Heal, the CEO of Pan Africa Solar.

According to Justin Woodward of JCM Capital, a Canadian Private Equity firm who are co-developers in the project, “this is the start of a solar revolution in Nigeria.”Pan Africa Solar says that once commissioned, this 75mw solar project will be the largest of its type in Sub Saharan Africa (excluding South Africa) and will provide power for 1.1 million Nigerians.

It also claims that over 500 local people will be employed during the 12 month construction period and it is estimated that more 40,000 new jobs will be created from the additional economic activity stimulated by the power plant.A consortium of sponsors for the project is made up of Pan Africa Solar, JCM Capital and the African Finance Corporation (AFC).

The FMO are the lead arrangers of debt raised from the development finance institutions that include DEG and Proparco.The project is also receiving support from the World Bank, Power Africa and MIGA.